📄 Abstract
The financial market provides investors with diverse investment opportunities through money market and capital market instruments. Investors’ behaviour towards these markets is influenced by financial, economic, informational and behavioural factors. The present study, entitled “A Study on Factors Influencing Investors’ Behaviour towards Money Market and Capital Market”, aims to identify and assess the factors influencing investors’ behaviour towards money market and capital market investments in Bangalore District. The study adopts a descriptive and analytical research design and is based on primary and secondary data. Primary data were collected through a structured questionnaire from a sample of 410 investors, selected using the Yamane sampling method. Multiple regression analysis was employed to examine the influence of the selected factors on investors’ behaviour. The findings reveal that the money market regression model has an R² value of 0.713, indicating that 71.3% of the variation in investors’ behaviour is explained by the selected factors. Interest Rate/Rate of Return, Financial Literacy and Market Conditions emerged as major positive influences, while Risk and Safety, Inflation Rate, Tax Benefits and Investment Horizon showed significant negative relationships. Economic Stability and Availability of Information were found to be insignificant. In the capital market, the regression model recorded an R² value of 0.916, indicating that 91.6% of the variation in investor behaviour is explained by the selected factors. Expected Rate of Return, Liquidity and Income Level emerged as major positive influences, while Financial Literacy and Investor Sentiment and Behavioural Factors showed significant negative relationships. The study concludes that investors’ behaviour is multidimensional and differs according to the nature and characteristics of the financial market. The findings provide useful insights for investors, financial institutions, investment advisors and policymakers in developing appropriate investment strategies.
🏷️ Keywords
📚 How to Cite:
Dr. Prakash G M , A STUDY ON FACTORS INFLUENCING INVESTORS’ BEHAVIOUR TOWARDS THE MONEY MARKET AND CAPITAL MARKET IN BANGALORE DISTRICT , Volume 12 , Issue 8, August 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , Pages: 988 - 995 , DOI: https://doi.org/10.36713/epra28951